Imsat posts four times higher nine-month profit

Industrial automation company Imsat Bucharest ended the first nine months this year with 39.7 billion ROL ($1.2 million) net profit, four times more than in the same time last year, when the profit amounted to 9.6 billion ROL ($0.3 million).

The company made more than half of the nine-month profit in the third quarter. The second half of the year brought for Imsat the completion of three construction and automation contracts for three cement plants: one in Jordan (for the French group Lafarge), one in Honduras and another one in Romania, in Alesd (for the Swiss company Holcim). The Holcim contract alone amounts to $10 million.

Imsat saw even bigger core business-related earnings, which reached 42 billion ROL, but they were hurt by the financial losses worth 3 billion ROL. By the end of September, Imsat totalled 285 million ROL debts, 10% up from the beginning of the year.

Company officials said they expected a $1.5 million total profit and a $34 million turnover by yearend. Nine months through this year, Imsat sales topped 993 billion ROL ($30 million), 36% more as compared with the year-ago period.

Its clients include General Electric and ABB. Some of the turbines made by General Electric are equipped with control panels produced by Imsat. The long-term collaboration between GE and Imsat began two years ago and Imsat has already started production for the next year contract. Imsat also derives revenues from the co-operation with CFR (Romanian Railway Company) for the signalling and automation of a section of the European IV railway corridor.

Imsat shares are listed on the second category of the Bucharest Stock Exchange, but they are suspended from trading in view of delisting following a tender offer. Broadhurst investment fund announced it would pay 1,300 ROL for every share it did not have, more than the price of the shares in the last twelve months, 1,155 ROL. vlad.nicolaescu@zf.ro